Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 777)
The primary purpose of Presidential Decree No. 777 is to change the official fiscal year of the Philippine government from the period July 1 to June 30 of the following year to the calendar year period from January 1 to December 31.
The fiscal year prescribed by Presidential Decree No. 777 takes effect on January 1, 1977.
All branches, subdivisions, instrumentalities, departments, bureaus, offices, and agencies of the Government of the Republic of the Philippines, including government-owned or controlled corporations, are affected by the change.
The fiscal year beginning July 1, 1975 and ending June 30, 1976 was extended to include the additional six-month period from July 1 to December 31, 1976.
The budgetary provision for minimum essential operating requirements for the six-month period shall not exceed fifty percent (50%) of the programmed or actual current operating expenditures for the immediately preceding twelve-month period.
They must be submitted to the Development Budget Coordination Committee (DBCC) not later than March 31, 1976, for approval.
Accounting and financial records, reports, and statements must be rendered to reflect the extended coverage of the immediately preceding fiscal period.
The Chairman of the Commission on Audit, the Secretary of Finance, and the Commissioner of the Budget are responsible for promulgating the necessary implementing rules and regulations.
All inconsistent laws, executive orders, administrative orders, ordinances, resolutions, rules, and regulations or parts thereof are repealed or amended accordingly to conform with this decree.
Changing the official fiscal year was necessary to better synchronize the preparation, submission, authorization, and execution of socio-economic development plans and the annual budget, and to facilitate compilation and analysis of government transaction data for social, economic accounting, and statistical purposes.